Business cycles with worker moral hazard
Article Abstract:
The problem of cyclical unemployment in industrialized countries was analyzed through the efficient wage theory. Unemployment was postulated to have two causes, the failure to have long-term contracts and the practice of firms to layoff employees when output levels are low. A model of an economy that produced a single good and imported a single consumer good with risk neutral and similar workers was presented. It was concluded that the efficient wage theory has a limited function in explaining changes in employment.
Publication Name: European Economic Review
Subject: Economics
ISSN: 0014-2921
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
A new specification for aggregate employment in the U.K
Article Abstract:
The major parameters of aggregate employment in the UK were examined in an open economy disaggregated model. The parameters were wage elasticity of labor demand and estimates of labor adjustment. The model presents a labor demand wage elasticity of 0.16, compared to existing estimates of 0.95. On employment adjustment, the model suggests a more rapid pace at 0.31 compared to the 1.04 of current estimates.
Publication Name: European Economic Review
Subject: Economics
ISSN: 0014-2921
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Minimum wages for Ronald McDonald monopsonies: a theory of monopsonistic competition
Article Abstract:
A research which examined the effects of minimum wages questioned the traditional concept that minimum wages reduce employment using the monopsonistic competition model. Results show that a minimum wage increase also raises employment in every company, causes departure and may increase or reduce aggregate industry employment. Moreover, the effects of minimum wages to price depends on the product market.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Comment on E. Dierker and B. Grodal, "Modelling Policy Issues in a World of Imperfect Competition." Adjusting Green NNP to measure sustainability
- Abstracts: Realizing the power of strategic vision. Strategic planning for the millennium: resolving the dilemma. The shakeout in microcomputers: causes and consequences
- Abstracts: Perpetual signalling with imperfectly correlated costs. Auction form preferences of risk-averse bid takers. Revenue-raising versus other approaches to environmental protection: the critical significance of preexisting tax distortions
- Abstracts: A model of optimal growth strategy. Projection methods for solving aggregate growth models. Optimal fiscal policy in a stochastic growth model
- Abstracts: Continuous-time sunspot equilibria and dynamics in a model of growth